Victory Valley (Calif.) Community Hospital is ignoring Attorney General Kamala Harris' objections to the hospital's proposed sale to Ontario, Calif.-based Prime Healthcare and continues to move forward with the controversial system, according to a Los Angeles Times report.

The attorney general vetoed the proposed sale in September, saying Prime's takeover of the bankrupt hospital was not in the public interest. Her concerns include Prime's "disturbing business model" and reduced availability of healthcare services. Ms. Harris has explicit jurisdiction over transactions between California's non-profit hospitals, including the 101-bed Victor Valley.

Now the hospital has signed two agreements with Prime, according to the report. One is for a $6 million line of credit — a deal Ms. Harris says will give Prime control of Victor Valley. Details of the second agreement were not included in the news report. In a separate strategy, Victor Valley also requested a judge overturn her veto on the sale.

Ms. Harris has said Prime is not the only option to keep the hospital open, according to the report. Riverside, Calif.-based KPC Group, headed by Kali P. Chaudhuri, MD, has offered $31 million to takeover the hospital.

Prime officials declined to comment on the Victor Valley takeover at the time of the news report's publication, according to the report.

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